Yayasan Sejahtera 1E1F programme is a joint effort between Yayasan Sejahtera Malaysia and Yayasan...

Yayasan Sejahtera

Annual Report

2012

Contents

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Yaya

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Message from our chairman

About our foundation

Where we operate

Beneficiary story #1: Hasnah's new enterprise

Kelantan

Pahang

Sabah

Beneficiary story #2: siti juarmah's chillies

Beneficiary story #3: a grateful school

Sarawak

A word with our partners

2012 to 2013 and beyond

Our team

Board of trustees

Trustees' report and audited financial statement

Acknowledgements

1 Yayasan Sejahtera

Message from our chairman

On behalf of the Board of Trustees, I am proud to present our 2012 Annual Report. The Board and I are very delighted and take pleasure in being associated with the work of Yayasan Sejahtera whose cause—alleviating hardcore poverty in Malaysia—is close to our hearts. We hope that you will also derive a mutual appreciation for the foundation's work as you read this report.

We aspire to build resilient communities. Our relentless approach is to build sustainability into our projects to create long-term impact. Yayasan Sejahtera has touched the lives of at least 4,939 families since its inception in 2009, and in 2012 alone, 534 new families were rendered unparalleled levels of support in the states of Pahang, Kelantan, Sabah, and Sarawak. On top of this, we have continued our support for 77 families from our projects in Pahang, Kelantan, and Sabah, that were carried out in the previous years. We have also developed a total of 8 new projects which began in the early months of 2012, projects which you will read about later in this report. Furthermore, I am happy to announce the completion of numerous projects which have started as early as 2009 by the end of last year. These include, but are not limited to:

• Pilot 1, which featured programmes to enhance community cohesiveness such as the Bumi Hijau competition, gotong-royong, and religious programmes with Yayasan Sejahtera participants in Pahang;

• The national roll-out of our on-going Pilot 2 programme, in which Napier grass and watermelon were planted in Kelantan;

• Small Grants 1.0 and One Enterprise for One Family (1E1F), both of which were also in Kelantan.

Our 2012 projects and operations cost a total of RM2.1 million, funded mostly by government grants—received by Yayasan Sejahtera since 2009—as well as contributions from corporates and GLCs. I would like to thank Khazanah Nasional Berhad’s continuous support, as well PEMANDU and numerous other GLCs and members of corporate Malaysia such as Maybank, Lembaga Tabung Haji, and Kuwait Finance House who have made our service possible.

Driven by the belief that communities gain more confidence as well as experience more benefits through meaningful participation, we have strived to escalate our engagement approach with the community. As it stands, many of the communities we work with own only basic prerequisite facilities to conduct programmes. To illustrate how basic facilities might be an obstacle to many other subsequent programmes, I would like to highlight the plight of the children in Kampung Song Song, Sabah. Basic preschool education precludes them from properly absorbing and understanding the syllabus in primary school, which delays their learning experience. Our response to this was to design educational support programmes like Teaching for Change to improve the fundamentals of the community before embarking on more extensive livelihood projects. By involving the community—especially parents—

2Annual Report 2012

in the education of these young children, our programme will be able to expedite the improvement of community cohesiveness as well as the general level of education of these children, who are the future of Kampung Song Song. Teaching for Change is but one of the many key community-changing programmes that unlocks the first doors to more opportunities.

We recognise that, even with ample preparation and support, organisations like ours are not exempted from challenges. Let us consider Yayasan Sejahtera’s resource issues for instance. Our small secretariat team is tasked with carrying out big projects across the country and, many a time, our resources are limited and stretched too thinly that we sometimes overlook the opportunity to capture valuable information that could otherwise be employed in the design of new projects. In response to this, we are developing a more cohesive resource management system to monitor and evaluate projects. We also run specific trainings and capability enhancement workshops for our secretariat staff to expand their skillsets and knowledge for application in the field. Furthermore, we are now more cognizant of the fact that it takes time to engage stakeholders and establish our presence at the project site. In some instances, more time is needed to get to know the communities and the representations in the authority. Getting their blessing is key, so some of our projects require some time to take off the ground due to this process, which often necessitates schedule revisions. This too has been taken into consideration to ensure that our deadlines are met according to the time frames entrusted to us by our partners.

I am happy to share that after four years of experience in the field, Yayasan Sejahtera has learnt much and it has used that experience to formulate an inclusive approach towards community development and address the challenges associated with poverty. This formula has garnered support from many potential donors and partners in which, despite a tough year for fund raising, we managed to foster partnerships and enjoy the synergies with organisations like PEMANDU to carry out our Community Development Project in Pitas, Sabah, where crop production capabilities there were augmented and that in turn improved the community’s livelihoods. I would like to urge more corporate donors to work together with us to alleviate poverty in Malaysia as part of their Corporate Social Responsibility agenda and, in due time, make it a thing of the past.

Finally, I would like to say a special thank you to all of our beneficiary families, who have been allowing and accepting us to make changes in their lives, which in turn, enriched our own organisation. And this appreciation also goes to all of our staff, supporters, volunteers who never fail to inspire us with your passion and tireless commitment.

Tan Sri Faizah Mohd TahirChairman

3 Yayasan Sejahtera

About our foundation

Objectives

• To ensure that Yayasan Sejahtera communities have access to a basic standard of living and enjoy at least a minimum quality of life.

• To support the creation of sustainable living environments for vulnerable communities in Malaysia.

• To deliver this mandate through the efforts of government-linked companies, government-linked investment companies, and corporate Malaysia.

• To work in partnership with beneficiaries and civil society partners to leverage and maximise programme benefits.

Programme MODULES

At Yayasan Sejahtera, poverty is more than a lack of income. Poverty, in the Malaysian context, involves unfulfilled basic food needs and lack of access to facilities like electricity, water, and basic housing. Yayasan Sejahtera’s holistic approach to poverty alleviation and empowerment of the hardcore poor is premised on four building blocks:

Module 1 – Supporting Sustainable LivelihoodsWe believe in alleviating poverty through encouraging employment, augmenting skillsets, capacity-building, or providing access to capital for small business owners. As the vast majority of these families depend upon agriculture and small scale business to survive, we strive to increase their capacity to make such activities more productive and profitable for them.

Module 2 – Supporting Basic Food NeedsYayasan Sejahtera gives assistance through supporting the dietary needs of beneficiary families with innovative community- and home-based farming on vacant plots of land in and around their homes.

Module 3 – Providing Basic Community ServicesFor the hardcore poor, life is harder without basic amenities like water and sanitation. Yayasan Sejahtera provides access to basic community services like a sustainable and clean water supply through the use of innovative methods. With such access, people can embark on livelihood projects to generate better income for their families.

Module 4 – Rehabilitation / Building of HomesYayasan Sejahtera aims to address the lack of basic housing amenities that stem from the root of poverty. We support low-income households to perform basic repairs to their homes to reach an acceptable standard of living, such as roof and floor repairs.

4Annual Report 2012

4,939 families assisted from 2009 until December 2012

WHERE WE OPERATE

18

113

26

87

2,230

2,437

20

5

3

PAHANG

Project Perumahan Yayasan Sejahtera 20

Blind Community in Maran 5

Yayasan Sejahtera-TM Single Mothers 3

TOTAL 28

KELANTAN

Pilot 2: Napier and Watermelon 30

Small Grants 1.0 20

One Enterprise for One Family 60

Yayasan Sejahtera-TM Single Mothers 3

TOTAL 113

SARAWAK

Food drop in Lusong Laku 188

Food parcels in Pulau Bruit 2,042

Water filters in Pulau Bruit 1,772

Mosque rehabilitation in Pulau Bruit 272

Water purification system in Pulau Bruit 393

TOTAL 4,667

SABAH

Chilli Fertigation 26

Water Solution in Kg. Song Song 65

Teaching for Change 22

TOTAL 113

KEDAH

Home Rehabilitations 18

TOTAL 18

5 Yayasan Sejahtera

LocationPasir Puteh, Kelantan

Bachok, Kelantan

Project DurationApr 2011 – May 2012

Beneficiaries20 Families

Approved BudgetRM41,442.50

DonorKuwait Finance House

Kelantan

Small Grants 1.0

The objective of the Small Grants 1.0 project is to provide 20 hardcore poor families with a sustainable source of income. This aid is given to those who own or are currently running a small business, plantation site, or another economic activity in order to increase their income above the poverty line.

The project benefits 20 families in Kelantan–13 in Pasir Puteh and 7 in Bachok–through the provision of equipment and hardware to assist three types of small business sectors: general businesses, which had 7 beneficiaries; home-based businesses, with 9 beneficiaries; and agriculture, which consisted of 4 beneficiaries.

Feedback from the beneficiaries has been positive: 77 percent of the beneficiaries expressed that the equipment received was of good quality and served its purposes well. The equipment that malfunctioned was quickly repaired and commissioned into service within a short amount of time.

In terms of the commitment of the beneficiaries, Yayasan Sejahtera has found that they have demonstrated strong ownership through the monitoring of their own income and they also took the initiative to update their financials every month. Furthermore, children or spouses in the beneficiary families have helped in the work as well. These families are sufficiently resourceful, take initiative and ownership, and put in the effort to see to it that the assistance from Yayasan Sejahtera is used to increase their income and improve their quality of life. As a result, 45 percent of the beneficiaries successfully recorded monthly income increments ranging from RM28.60 to RM1,478.40.

The improvement in the standard of living of the beneficiaries were evident especially in terms of financial situation–many had greater financial stability and even started saving–and awareness of their social assets grew. This is a good model of a people-centred approach as the interest, needs, and potential of each beneficiary was assessed beforehand to determine what type of equipment and assistance was suitable for them. With the right aid, the beneficiaries were proactive and demonstrated strong ownership.

6Annual Report 2012


Project DurationOct 2011 – Sept 2012




One enterprise for one family (1e1f)

The 1E1F programme is a joint effort between Yayasan Sejahtera Malaysia and Yayasan Pendidikan dan Vokasional Wanita Malaysia to empower the poor with new or additional vocational and entrepreneurial skills in the areas of tailoring, baking, ICT, mobile phone repairs, financial literacy, and management. Participants were also given equipment (sewing machines and baking ovens) to support their business activities.

To date, 152 select participants from 60 households in the district of Pasir Puteh, Kelantan, successfully completed the programme, which began at the end of 2011 and continued in 2012 through successive batches.

The curriculum involved in this programme merges theory and practical aspects so that participants can upgrade their skill and confidence level to be able to maintain and expand their businesses.

Some of the modules in this programme involved skills pertaining to tailoring, pastry and baking, computer design, and mobile phone repair. Though the training component of the programme ended in 2011, Yayasan Sejahtera continued to monitor the progress of the participants of the 1E1F programme throughout 2012.

The interaction between our foundation and the participants has illuminated us to the fact that many have improved their monthly income, and we have continuously provided advice and guidance to participants after having trained and nurtured the community there.

7 Yayasan Sejahtera


Bachok, Kelantan

Project DurationNov 2012 – Sept 2014



DonorKhazanah Nasional Berhad

Ongoing project

Ongoing projects are marked with this symbol.More information regarding these projects will be available in the 2013 Annual Report, which is forthcoming.

Ongoing project

Small Grants 2.0

Building on Yayasan Sejahtera’s Small Grants 1.0 project—where we provided equipment and agricultural inputs to beneficiaries to do their own small-scale business and successfully helped them to generate additional income, increase productivity and efficiency. Small Grants 2.0 will eventually involve 55 beneficiaries in Bachok and Pasir Puteh with a focus on the agriculture sector as it is the most common economic activity there. In Pasir Puteh, the beneficiaries are single mothers and farmers who are in the hardcore poor and poor categories. In Bachok, assistance will be extended to former tobacco farmers who are facing difficulties with obtaining a livelihood as they are unable to find alternative ways of generating income. The objective of the project will be to move these beneficiaries above the poverty line by helping them earn a better income. In order to understand how we might achieve this, we engaged the Department of Agriculture and they informed us that farmers with small holdings lacked access to equipment that would otherwise increase their productivity, make their work more efficient, and produce higher-quality, higher-quantity yields. Additionally, those involved in small businesses and sewing were targeted as beneficiaries. Training will form the core of the project and capacity-building activities related to financial literacy and management, motivation, and technical knowledge will be conducted. Then, we will further enhance their growth by encouraging cluster and group formations for support building, networking, and to have better access to advisory services, technical knowledge, and innovations from the Department of Agriculture. Beneficiaries will eventually be linked up with wholesalers, retailers, and buyers to sustain them after the project ended.

This project’s success will be due in no small part to the Universiti Malaysia Kelantan (UMK), which is based in Bachok. UMK has a pre-existing programme that encourages students to perform community service through the application of their skills and knowledge to address their community’s concerns. In collaboration with Yayasan Sejahtera, the students—one student per beneficiary—provided motivation, peer support, soft skills and financial literacy training, and helped them with market research, product innovation, and development of business plans.

8Annual Report 2012

Project: one enterprise for one familyLocation: pasir mas, kelantanInterviewee: Hasnah

Hasnah, from Pasir Mas, Kelantan, earned about RM300 a month before participating in the 1E1F programme. She underwent sewing and ledger training in early 2012, and during the Hari Raya festival that year, she applied her newfound knowledge to earn almost RM12,000 from tailoring curtains, tablecloth, and cushion covers as well as selling kuih raya.

She uses a van to carry all of her products, and even after deducting the monthly instalment for her Mazda van and her children’s education feed, she has RM500 to RM600 to spare every month. Yayasan Sejahtera’s partner, Telekom Malaysia, came to repair her house under the TM Single Mother programme and they have also selected her to receive a three-wheeler.

“The financial literacy training I received taught me to not spend lavishly. I never knew that we could organise our money with a system like that,” she tells us.

Hasnah’s new enterprise

9 Yayasan Sejahtera

LocationMaran, Pahang

Project DurationJun 2009 – Jul 2012


Approved BudgetRM1,598,300.00

DonorsUEM

ProtonLembaga Tabung Haji

Khazanah Nasional Berhad

Pahang

Bumi Hijau Competition, Gotong Royong, and Religious Programme, Maran, Pahang

Yayasan Sejahtera’s Pilot 1 project in Maran, Pahang, successfully provided 20 hardcore poor families with newly-built houses in a new housing area named Kawasan Perumahan Yayasan Sejahtera in Kampung Teluk Melati. As the 20 families had to relocate to the new area, Yayasan Sejahtera decided to implement several programmes for the families to familiarise themselves with their new surroundings. Nonetheless, the team noticed there was still resentment from families of Kampung Telok Melati towards the families of Perumahan Yayasan Sejahtera whom they considered outsiders.

Three new activities were put forward to strengthen the relationship between the communities there. From November 2011 to July 2012, the three programmes that were carried out were:• Bumi Hijau Competition

This activity was mooted by one of the community members to the team during a site visit. The beneficiary, Pn. Nurlali binti Idris, is a single mother who plants vegetables and sells them at the market to earn more money, which she gave to her children as pocket money. Based on the suggestion, Yayasan Sejahtera initiated the Bumi Hijau Competition to foster the community’s interest in cash crops. This competition had the support of District Agriculture Department as technical advisor. In addition, they provided vegetable and fruit seeds such as chilli and eggplant for the community’s use. The competition was divided into three phases over 10 weeks to allow the plants to grow and produce results. At the end of each phase, the team evaluated their progress and winners were selected based on land utilisation, health of plants, effort, creativity, innovation, and overall cleanliness. As a result of this competition, they managed to grow for their own consumption. In addition, some of the participants informed Yayasan Sejahtera that they had started selling the crops at local morning market to gain additional income.

• Gotong-royong Prior to Yayasan Sejahtera’s arrival, a gotong-royong was performed by the community to construct fencing around their compound in January 2010. The team started the programme with an awareness talk on importance of a clean and healthy environment to reduce the risk of dengue. Throughout this programme, each household took the initiative and conducted to gotong royong activity on a rotation basis. This exercise managed to foster more cohesiveness amongst the neighbours, especially between the women and children.

10Annual Report 2012

• Religious Activity This activity was proposed by the women in the community. The team from Yayasan Sejahtera approached the Religious Department to assign an Ustazah to facilitate the religious classes in Perumahan Yayasan Sejahtera. In order to strengthen the bond of the community, each house was requested to host the classes on a rotation basis. The classes took place once a week on Thursday evenings where the group recited the Yaasin followed by a short teaching session led by the Ustazah. In the beginning, there was difficulty in getting each house commit to hosting the classes so the community centre was used as the meeting place instead. Nonetheless, this move opened doors that ushered in new interest from the residents there. During one monitoring session, our team was informed that the community had started to conduct the religious activities at their own home on a rotation basis. Local religious leader applauded the initiative as a success in bringing the villagers of Kampung Teluk Melati and Perumahan Yayasan Sejahtera together.

11 Yayasan Sejahtera

LocationKampung Song Song, Sabah

Project DurationOct 2012 – Feb 2014




LocationPitas, Sabah

Project DurationApr 2011 – Jun 2013




Ongoing project

Ongoing project

Teaching for change, kampung song song

In Kampung Song Song, there are 219 children, with 24 in preschool and another 195 in primary school. Although absentee rates are negligible, the academic performance of the students were found lacking. Besides only having a school average grade of 2.99, the students also do not take remedial classes to better their situation. The lack of early childhood education at the preschool level (ages 4-6) is an obstacle to the students’ learning in the primary school years (ages 7-12). This includes the lack of early exposure to learning methodology and many children also do not have good role models to provide guidance in their studies.

Together with Universiti Malaysia Sabah (UMS), we are setting out to turn this around and improve the quality of life for the students so that they can finish secondary school and progress into tertiary education. The first thrust of the effort was the establishment of Systematic Special Remedial Classes in English, Mathematics, and Science to boost passing rates amongst the students.

Furthermore, we understand that education also happens at home, and that is why we are encouraging and motivating parents to attend events for the students as well as involve them in the setting up and running of a mini library to aid their children’s studies. As the programme at the village continues into 2013, more effort is being invested into classes, assessments, and the mini library.

Chilli fertigation, pitas

In 2012, the Koperasi Petani Yayasan Sejahtera Pitas was set up for the cumulative benefit of the chilli farmers there. As the project extends from 2012 into 2013, a core thrust of the programme will be to strengthen the Koperasi as an institution in Pitas.

Our chilli fertigation programme trains beneficiaries to adopt fertigation as an alternative to regular planting methods. By adopting simple yet modern technologies, we are able to enhance the knowledge and skillset of these rural farmers to produce a better crop and improve their marketing abilities.

Sabah


Project: Chilli FertigationLocation: Pitas District, SabahInterviewee: Siti Juarmah

Siti’s third attempt to grow her chillies succeeds after meeting with two prior unsuccessful tries. Truly third time lucky, her plants were in the seedling stage when Yayasan Sejahtera paid her a visit in 2012.

There are currently 30 members in the cooperative with 8 pioneers and 22 new members joining later. After going through the Compost Fertiliser Course in 2012, Siti has used her newfound knowledge to increase the yield of her crop.

“We’ve made some compost, and it’s going OK.“Initially, we weren’t so motivated because our chillies were pest-ridden and were difficult to care for. But the course has renewed our interest in starting again,” says Siti.

The cooperative has been busy in 2012. A nursery was built, and many of the members are making their own compost fertiliser to sell to others besides using other fertilisers.

“Last year, some managed to sell 100kg of chillies, some had 80kg. Some even had 200kg. But some of these people left because chillies are very labour intensive as you have to tend to them every day.“So if you missed a day—to attend a wedding, for example—the chillies would get infected by disease. That’s the problem. But they don’t know that there’s a new method through using compost and other organic ways to treat chillies.“In the past, we used chemicals that had to be sprayed often. But now, it’ll be different. It won’t be so labour-intensive.“Previously, I planted 500 plants. This year, I’m trying for 600,” she says, with a hearty laugh.

Siti juarmah’s chillies


LocationKampung Song Song

Kota Belud, Sabah

Project DurationJun 2012 – Nov 2012



DonorMinistry of Finance

LocationKampung Song Song

Kota Belud, Sabah

Project DurationDec 2012 – May 2014




Ongoing project

Ongoing project

Water solution, kampung song song

Kampung Song Song is a remote Bajau village in the district of Kota Belud, Sabah, and it is home to 65 families with an average of four dependants.

Yayasan Sejahtera’s assessment of the project site found that the community did not have access to a clean supply of water supply. Rather, they depended on natural resources such as rainwater and river, making livelihood projects—particularly livestock and agriculture-related ones—very difficult to execute.

To solve these challenges, Yayasan Sejahtera met with PACOS Trust—an NGO that has been active in indigenous rights and issues in Sabah since 1987—to find a suitable water supply system for the villagers. Both partners involved the villagers in the problem-solving process through mobilising the community to communicate their wants and needs and equipping them with the know-how to maintain the water supply system.

A gravity-fed water supply system was designed to achieve these aims, and a solar energy pump will extract the fresh water from the ground. Once Yayasan Sejahtera is able to secure the necessary land space to build the system, the installation of the system will begin.

Livelihood Programme in Kampung Song Song

Kampung Song Song’s unique combination of the right hillside topography, tropical weather, and soil type has opened up an opportunity for the residents there to farm ginger to improve their livelihoods. The District Agriculture Department suggested as much due to the fact that ginger has potential market value and requires less water than other crops, which is a critical consideration of the villagers there.

Another benefit of planting ginger is that there are no serious diseases that can affect the plantation as the crop is not prone to attracting pests. Whilst the villagers wait for the ginger to mature, the district agriculture officer also put forward the suggestion to also plant a short-term crop, brinjal, for household consumption in order to reduce expenses while waiting for ginger harvesting and selling.

The villagers of Kampung Song Song will be trained on the technical aspects of ginger and brinjal farming—including a field trip for real-world experience—as well as the financial and marketing aspects of selling ginger. When Yayasan Sejahtera last spoke to the villagers there, many began planting ginger with reports of some plants sprouting whereas others were readying the land for farming. All in all, 30 families in Kampung Song Song will not only be able to enjoy the fruits of their labour but also generate income as well as acquire new farming skills and knowledge.


LocationPitas, Sabah

Project DurationDec 2012 – Nov 2015


Approved BudgetRM1,151,096.00

DonorsPEMANDU

Ministry of Finance

Ongoing projectCommunity Development Programme for three Villages, Pitas

The villages of Kampung Sungai Eloi, Kampung Tampakahu, and Kampung Kinango in Pitas, Sabah, were selected as beneficiaries for a development programme that began in the fourth quarter of 2012 and ends in 2015. The programme will enhance their knowledge and skills on crop production and marketing, thereby increasing their income and improving their overall quality of life.

PEMANDU has been engaged to fund the bulk of the three-year programme which will, among other things, ensure that most of the folk here will be able to provide a balanced diet for their children, enjoy basic utility services, increase their income, and participate in community-related activities for social cohesion.

An assessment has been conducted to determine the most suitable water system to be used to address the lack of water in these villages with vendors expressing an interest in solving these challenges, and the results are forthcoming. Furthermore, the youth from some 128 families here will play a part in developing a participatory video to monitor and evaluate the programme throughout its run.

Yayasan Sejahtera has also begun looking into suitable crops for subsistence farming so that the villagers will be able to sustain their lives after the programme ends.


LocationKampung Semop

Pulau Bruit, Sarawak

Project DurationMar 2011 – Apr 2013



DonorMinistry of Finance

LocationPulau Bruit, Sarawak

Project DurationDec 2012 – Mar 2013



DonorsLembaga Tabung Haji

Khazanah Nasional Berhad

Ongoing project

Sarawak

Water purification, kampung semop

After the Chairman of Yayasan Sejahtera had briefed Members of Parliament from Sabah and Sarawak on our work in 2010, the MPs shared proposals with us on how we could support the hardcore poor in their constituencies. Following this, Pulau Bruit was identified as a project site as the community there was in critical need for basic services such as lighting in public spaces, sanitation and waste management, and water supply.

To address the quality of water there, a centralised water purification system was proposed to filter the water in the rain harvesting pond in Kampung Semop, Pulau Bruit.

With assistance from Malaysian Airlines, Honeywell China, and the Public Works Department, the installation of the filter was completed in March 2012 and the project has benefited all 264 households in the village.

The quality of water has improved significantly from before, but beneficiaries were encouraged to boil the water to further ensure cleanliness. The water purification machine was handed over to the community in May 2012, marking the end of the project.

Water Supply Solution for Four Villages, Pulau Bruit

Clean, potable water is a rare commodity during Pulau Bruit’s drought, caused by several factors such as salt water moving upriver and into canals, poor sanitation and disposal of household and human waste, and the use of chemicals and fertilisers in palm oil plantations. The only reservoir on the island is in Kampung Semop but the water is not drinkable as it has a greenish tint and foul smell. The rest of the island relies solely on rainwater harvesting for their daily water needs, and the rainwater becomes scarce during the dry season which happens in July every year.

The situation will be remedied in 2013, and the project has been underway since the fourth quarter of 2012. The construction of platforms for three villages—Kampung Sedi, Kampung Sebako, and Kampung Penuai—and the rehabilitation of platforms for Rumah Panjang Juing are in the works, whereas rainwater harvesting systems will be installed in all three villages as well as well Kampung Sedik, which further requires a concrete foundation for its abandoned but still-functioning large water tanks.

The project will provide beneficiaries with a low-maintenance rainwater harvesting system to provide for their daily water needs and improve their quality of life.


LocationPulau Bruit, Sarawak

Project DurationDec 2012 – Nov 2013

Beneficiaries1,686 Families



Ongoing projectPrimary school support, pulau bruit

Despite having 10 primary schools in 13 villages, Pulau Bruit’s first secondary school will only be ready in 2015 as it is still under construction in Kampung Semop. Of the 10 primary schools, only Sekolah Kebangsaan Kampung Semop is equipped with facilities and equipment such as furniture, a properly-stocked library, and a physical education area.

The teachers at these schools mentioned that there are graduates in the villages, but most are unable to secure employment and end up helping their families with subsistence farming and fishing. Because of this, parents do not take education seriously, and the problem is exacerbated with limited teaching resources that constrains the students academic growth.

A team from Yayasan Sejahtera will work with Sekolah Kebangsaan Kampung Penibong to set up a library equipped with books and teaching aids. Furthermore, we aim to provide basic necessities such as tables, chairs, books and shelves to several target schools according to their list of requested items—nine schools and 1,686 families will be directly affect by this effort.

Yayasan Sejahtera aims to initiate an Educational Support Programme with a focus on improving the academic achievement and learning experience of students through the involvement of teachers and parents.


Cikgu MasaadPrincipal of SekolahKebangsaan SebakoPulau Bruit

Interview with cikgu masaad ahmad rais

“We feel honoured to receive the assistance from Yayasan Sejahtera, to be an exemplary model for other schools in Pulau Bruit,” says Cikgu Masaad Ahmad Rais, principal of Sekolah Kebangsaan Sebako Pulau Bruit, Sarawak.

His school will receive a resource centre equipped with books and learning resources to aid its 54 students from Year 1 to 6. Nine students will be sitting for UPSR soon, and the school’s performance in the UPSR has declining from a 100 percent pass rate in 2010 to 50 percent in 2011. In 2012 only 10 percent passed the UPSR.

“There has been a problem of lack of interest and focus among the students. Students seem to study at the last minute in Year 6, when they should start at Year 4,” he adds.

Most of SK Sebako’s students are children of fishermen, and only four of them are children of public servants.

“Some of the children are qualified to attend boarding school but parents were hesitant to be far away from the children—in doing this they did not realise that they missed out on a big opportunity for their children. But I do understand that the cost of transportation between Daro, Igan, and Mukah, where the schools located, is very expensive,” laments the principal.

With Yayasan Sejahtera’s help, Cikgu Masaad is making an effort to expose his students to the outside world and be aware of how academic and co-curricular achievements takes one places.

He prays that the community and parent-teacher association will have a better understanding of the importance of education.

“Thank you, Yayasan Sejahtera, for supporting our efforts in raising the education level of the people in Kampung Sebako Pulau Bruit!” offers Cikgu Masaad.

A GRATEFUL SCHOOL


Universiti Malaysia sabah (UMS)

Sekolah Kebangsaan Suang Punggor in Kota Belud district, Sabah, has been a beneficiary of Yayasan Sejahtera’s Teaching for Change programme. The programme was conducted in partnership with Universiti Malaysia Sabah (UMS), an important institution of education in the state. Patong bin Sartis, the principal of the school, has reported that the project has sparked a renewal in the student’s interest in education and has warmly welcomed the attention of UMS’s volunteers.

“Firstly, the project’s good because the students get to experience a different learning environment. Secondly, the students get to spend their time in a more structured way because, on Saturdays, they have no activities. With this programme, they get six days of schooling a week, and it looks like the reception is good. You can say that all the students come on Saturday. This is what the parents tell us. They say, ‘On Saturdays, the children get up very early.’ They are enjoying school,” reports the very happy principal.

Andriano, is a volunteer from UMS as well as a Teaching English as a Second Language (TESL) student from Tambunan, Sabah. Volunteering has been a part of the process of his self-discovery as he is considering becoming a teacher, and the rigours of the job is preparing him for his practical training.

Easy access to curious students has helped Adriano a great deal in getting practical experience in teaching, and it also gives him the opportunity to use different teaching techniques.

“We plan the lessons beforehand. We created the modules here ourselves. For the students, they can be exposed to materials from the outside because they’re constantly relying on textbooks, and a little variety in terms of getting other material may be good for them.”

Leonie, who is also a volunteer from (UMS), hails from Keningau, Sabah. Together with Andriano and other volunteers, Leonie is also bringing new experiences to the children in Sabah. She is a third year education and science student (BEd.) who has been formulating her lessons plans since 2012. On 19 January 2013, she began teaching science at the school.“If we were not here teaching these students, they would never come across any form of information and communications technology, such as laptops. So when we use our laptops, they will ask, “Teacher, what is this?” They want to try. They want to touch the screen and press the buttons of the laptop. The students want us to teach using the laptop because they want to see the videos. The students’ interest makes it easier to achieve our objectives by teaching using ICT,” explains Leonie.

Andriano

Leonie

A Word With our partners


The third volunteer we spoke to from UMS was Prishella, who is from Bintulu, Sarawak. Much alike Leonie, Prishella too is a third year education and science student (BEd.) and teaches science at the school.Teaching is a joy to Prishella because “the kids are cute, so active and excited!” she exclaims.

“Whenever I teach them, they always give answers. For example, when I ask them ‘Which animals give birth, and which lay eggs?’ they will give lots of answers. That’s the most important thing. They are very good participants,” says Prishella.

Her efforts at the school are also centred on using ICT to teach science and mathematics so that children in the rural areas will be able to familiarise themselves with technology.

Universiti Malaysia kelantan (UMK)

Yayasan Sejahtera’s efforts in sourcing for a partner to implement the Small Grants 2.0 programme received a breakthrough when Universiti Malaysia Kelantan (UMK) stepped forward to join forces. The team from UMK was led by Dr. Noor Hisyam bin Mohd. Noor who, as the Head of the Human Sciences Department, spearheaded the programme in which 60 volunteer students were a part of.

These 60 students hail from UMK’s campuses in Pengkalan Chepa and Bachok and they are managed by 24 facilitators. Each of the students will be given two credit hours after completing the programme.

Over the next two years, 55 beneficiaries from Pasir Puteh and Bachok will be provided tools, raw materials, training, and motivational courses to stimulate their small-scale business activities. The facilitators and volunteers from UMK will help the beneficiaries to improve their financial savviness and motivate to them to coordinate amongst themselves to develop better marketing strategies.

Every month, the students will pay a visit to the beneficiaries’ homes to monitor their development and present their findings to their facilitators, who will then report it to Yayasan Sejahtera.

Prishella


Dr. Noor HisyamHead of Human Sciences DepartmentUniversiti Malaysia Kelantan


2012 to 2013 and beyond

2013 promises to be a year for action and evaluation. Holding true to our tagline, Building Sustainable Communities, the community development approach that we adopted for our programme efforts in Yayasan Sejahtera since 2009 is aimed to empower, encourage participation, and create a sense of ownership in the communities we work with. As we move into 2013, our foundation is focused on enhancing the community’s feedback to further influence how our programmes should be designed and implemented. We are adamant that community involvement is key to the success of our efforts and we want the people we work with to have ownership over the assistance we provide and not to view it as a handout.

Throughout 2012, our consultations with the people in Pulau Bruit, Sarawak, were aimed at determining which type of water solution they would prefer and whether they are prepared to maintain the water system, to which the feedback was positive. The villagers chose a solution which they were familiar with and were confident to maintain, and they also offered their time and labour to make the project a success. This process allows the community and Yayasan Sejahtera to build an understanding between each other and foster mutually-beneficial learning. It strengthens relationships and trust, with more of the same to be developed over 2013.

But we have not stopped there. Our engagement and consultation with 65 individuals in Kampung Song Song, Kota Belud, Sabah, has been enhanced by the synergies achieved with our partner, PACOS, a well-known grassroots organisation in Sabah. In Kampung Song Song, we gathered 25 representatives comprised of village heads, JKKK members, men, women, and youths. They gathered to discuss, learn, and understand what the community needed, as well as took the opportunity to express their concerns and aspirations for their village. The process resulted in the villagers agreeing to construct a gravity-fed water system—this project will also be implemented in 2013. Demonstrating their ownership over this process, the villagers of Kampung Song Song then decided on what type of crop they would plant for their livelihood activity, and they collectively agreed to plant ginger and brinjal with the relevant technical expertise assistance coming from Jabatan Pertanian.

Meanwhile, in Bachok and Pasir Puteh, Kelantan, we tried a different approach which was to get the 53 families to network and solve the challenges before them. Networking gave them more exposure through the consultative process and developed bonds with one another. Through group formation, which was reinforced by market information, skills, and competence building, served the project’s intended purpose to improve the villagers’ self-esteem, independence, and self-sufficiency.

2013 will also be a year of active implementation and monitoring. We plan to take a look at what we have been doing the past four years, with our evaluation necessitating a review of our strategies. Thus, a year-long strategic planning exercise is on the cards for our foundation.


Yayasan Sejahtera always believes that it can create shared value for corporations and the communities that we work with. The idea is to link up home-based family businesses in these villagers with different expertise providers such as the localised business community, academic institutions, NGOs, and the like to improve the village’s economy and social assets. Yayasan Sejahtera is confident that it will be able to facilitate an increase in our partners’ investment value to impact the communities in the four districts we are engaged with in Kelantan and Sabah as we are supporting them to develop sustainable livelihoods.

During the four years into our operations, Yayasan Sejahtera has planted the seeds in the journey to creating shared value with like-minded corporates. From 2013 onward, our foundation will increase its focus on inviting corporates to work hand in hand to benefit the local community through shared value and, in the process, build brands, improve staff engagement with the community, as well as give back to society.


Board of trustees

Tan Sri Faizah Mohd TahirTan Sri Faizah was appointed to the Board on January 2013. She holds a Bachelor’s Degree in Economics from Universiti Malaya and a Masters in Development Economics from Williams College, United States of America. She joined the Economic Planning Unit (EPU), Prime Minister’s Department, in 1973 and served in the agriculture, distribution, and human resource sections in various capacities. Her last position in the EPU was as Director, Commerce and Industry Section before she was promoted to the post of Secretary-General of the Ministry of Women, Family, and Community Development which she held from 2001 until her retirement in 2009.

Puan Sri Siew Yong GnanalingamPuan Sri Siew Yong has an extensive background in public relations including working with the Economic Development Board in Singapore, MTC (now British American Tobacco), and Malaysia Airlines. She currently holds directorships in several companies. In serving the community, she is currently President of Soroptimist International Federation of South West Pacific (2012-2014), Board Member of Malaysian Health Promotion Board (MySihat), Deputy Chairman of Yayasan Soroptimist Malaysia, and a Trustee on the Board of the Women’s Institute of Management and Yayasan Nanyang Press.

Prof. Dr. Sulochana NairDr. Sulochana has recently retired from her post as Director of the Centre for Poverty and Development Studies at University Malaya. An expert in poverty, her roles have included being consultant for the EPU, co-hosting conferences and roundtable discussions with UNDP and IDB, and playing an instrumental role in identifying the first holder of the Royal Professor Ungku Aziz Chair, Professor Jeffrey Sachs, of Columbia University.

Shahnaz al-Sadat binti Abdul MohseinA member of the Malaysian Institute of Certified Public Accountants, Shahnaz started her career with Arthur Andersen in Audit, Corporate Finance, and Process Risk Consulting. She has served various audit, financial and management roles with Malaysia Airlines and Khazanah Nasional Berhad, and until recently, she was the Executive Director of Strategic Human Capital Management for Khazanah.

Shareen Shariza binti Dato’ Abdul GhaniShareen is Director of Corporate Responsibility at Khazanah. Prior to joining Khazanah, Shareen served as Chief Operations Officer for MERCY Malaysia. Some of her accomplishments include serving as board member for Humanitarian Accountability Partnership and receiving the Pingat Darjah Paduka Mahkota Perak for her contributions in humanitarian work.


River

Rossimah

Our team

Chief Executive Officer (Vacant)

Programme

Rossimah Mohamed - Head of UnitRossimah has an Advanced Diploma in Business Management and she has been at Yayasan Sejahtera since May 2009. Rossimah is very fond of working with communities and she is also an experienced international development manager.

River Foo Siang Choon - Senior Officer, Project Management OfficeRiver is a Sociology (Hons) major from the University of East London. After having spend a numbers of years in fundraising and community engagement, River joined Yayasan Sejahtera in August 2012. Nur Azizah Anuarul Aini - Executive Assistant, Project Management OfficeNur Azizah holds a BSc (Hons) in Business Computing from Universiti Teknologi MARA Shah Alam. She has been a member of the Yayasan Sejahtera family since July 2011.

Nur Masliza Muda - Project Officer, KelantanNur Masliza graduated from University Malaya in the area of Public Administration and has researched the areas of poverty and social sciences since 2005.

Ghazalie Ansing - Project Officer, SabahAs a graduate of Universiti Teknologi Malaysia with a BSc (Hons) in Computer Science, Ghazalie decided to use his knowledge to serve communities through Yayasan Sejahtera since August 2012. Planning Development, Monitoring, and Evaluation

Mae Tan Siew Mann - Senior OfficerMae holds a Masters in International Relations from the Institute of Diplomacy and Foreign Relations and UKM. With 15 years’ experience in development, finance, and monitoring and evaluation, Mae became a part of Yayasan Sejahtera in November 2011.

Marketing and Communications

Aishah Amin - Senior OfficerAishah holds a BSc in Information Technology from Universiti Malaya. With over 10 years in humanitarian development and communications, Aishah has worked in Yayasan Sejahtera since October 2012.

Administration and Finance

Saifuddin Hassan - Head of UnitSaifuddin is a chartered accountant with over 25 years’ experience in the areas of finance, auditing and quality management. He joined Yayasan Sejahtera in August 2012.

Afizah Ariffin - AssociateAfizah is a graduate of Universiti Teknologi MARA with a Bachelor of Accountancy (Hons). She brings over 7 year’s worth of experience in finance to the table and she has been a part of Yayasan Sejahtera since May 2011.

Chan Ji Yun - Executive AssistantJi Yun started at Yayasan Sejahtera as a Graduate Employability Management Scheme intern in 2011. He was then offered a full time position with the foundation as an Executive Assistant in the Administration and Finance department. He was a Mathematics major.

Afizah

Aishah

Ghazalie

Azizah

Saifuddin

Ji yun

Mae

Masliza


Trustees’ report andAudited financial statement

Trustees' report

The Trustees hereby present their report together with the audited financial statements of the Company for the financial year ended 31 December 2012.

Principal activity

The principal activity of the Company is to address extreme poverty based on sustainable living approach which encompasses sustainable livelihood or skills development programme, access to education and social services/amenities and provision of habitable homes. There has been no significant change in the nature of the principal activity during the financial year.

Results

RMNET SURPLUS FOR THE YEAR 65,625

There were no material transfers to or from reserves or provisions during the financial year.

In the opinion of the Trustees, the results of the operations of the Company during the financial year were not substantially affected by any item, transaction or event of a material and unusual nature.

Dividend

No dividend shall be paid to the member of the Company.

Trustees

The names of the Trustees of the Company in office since the date of the last report and at the date of this report are:

Puan Sri Ng Siew YongProf. Madya Dr. Sulochana Nair a/pKutiri Raman NairShareen Shariza binti Dato’ Abd GhaniShahnaz Al-Sadat binti Abdul MohseinTan Sri Faizah binti Mohd Tahir (appointed on 5 March 2013)Datuk Ismee bin Ismail (resigned on 1 January 2012)Dato’ Mohammed Anwar a/l Fazal Mohd (resigned on 1 March 2012)


Trustees' benefits

Neither at the end of the financial year, nor at any time during that year, did there subsist any arrangement to which the Company was a party, whereby the Trustees might acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate.

Since the end of the previous financial period, no Trustee has received or become entitled to receive a benefit by reason of a contract made by the Company or a related corporation with any Trustee or with a firm of which he is a member, or with a company in which he has a substantial financial interest.

Trustees' interests

According to the register of Trustees’ shareholdings, none of the Trustees in office at the end of the financial year had any interest in shares in the Company or its related corporations during the financial year.

Other statutory information

(a) Before the statement of comprehensive income and balance sheet of the Company were made out, the Trustees took reasonable steps: (i) to ascertain that proper action had been taken in relation to the

writing off of bad debts and the making of allowance for doubtful debts and satisfied themselves that there were no known bad debts and that no allowance for doubtful debts is necessary; and

(ii) to ensure that any current assets which were unlikely to realise their values as shown in the accounting records in the ordinary course of business had been written down to an amount which they might be expected so to realise.

(b) At the date of this report, the Trustees are not aware of any circumstances which would render:

(i) it necessary to write off any bad debts or to make any provision for doubtful debts in respect of the financial statements of the Company; and

(ii) the values attributed to current assets in the financial statements of the Company misleading.

(c) At the date of this report, the Trustees are not aware of any circumstances which have arisen which would render adherence to the existing method of valuation of assets or liabilities of the Company misleading or inappropriate.


Other statutory information (continued)

(d) At the date of this report, the Trustees are not aware of any circumstances not otherwise dealt with in this report or the financial statements of the Company which would render any amount stated in the financial statements misleading.

(e) As at the date of this report, there does not exist: (i) any charge on the assets of the Company which has arisen since

the end of the financial year which secures the liabilities of any other person; or

(ii) any contingent liability in respect of the Company which has arisen since the end of the financial year.

(f) In the opinion of the Trustees: (i) no contingent liability or other liability has become enforceable or

is likely to become enforceable within the period of twelve months after the end of the financial year which will or may affect the ability of the Company to meet its obligations as and when they fall due; and

(ii) no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the financial year and the date of this report which is likely to affect substantially the results of the Company for the financial year in which this report is made.

Auditors

The auditors, Ernst & Young, have expressed their willingness to continue in office. Signed on behalf of the Board in accordance with a resolution of the Trustees dated 28 May 2013.

Shahnaz Al-Sadat binti Abdul Mohsein

Shareen Shariza binti Dato’ Abd Ghani

Kuala Lumpur, Malaysia


STATEMENT BY TRUSTEESPURSUANT TO SECTION 169(15) OF THE COMPANIES ACT, 1965

We, Shahnaz Al-Sadat binti Abdul Mohsein and Shareen Shariza binti Dato’ Abd Ghani, being two of the Trustees of Yayasan Sejahtera, do hereby state that, in our opinion, the accompanying financial statements set out on pages 24 to 45 are drawn up in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the Company as at 31 December 2012 and of the financial performance and cash flows of the Company for the year then ended.

Signed on behalf of the Board in accordance with a resolution of the Trustees dated 28 May 2013.

Shahnaz Al-Sadat binti Abdul Mohsein

Shareen Shariza binti Dato’ Abd Ghani

Statutory declarationPursuant to Section 169(16) of the Companies Act, 1965

I, Shareen Shariza binti Dato’ Abd Ghani, being the Trustee primarily responsible for the financial management of Yayasan Sejahtera, do solemnly and sincerely declare that the accompanying financial statements set out on pages 7 to 23 are in my opinion correct, and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act, 1960.

Subscribed and solemnly declared by the abovenamed Shareen Shariza binti Dato’ Abd Ghani at Kuala Lumpurin the Federal Territory on

Before me, Shareen Shariza binti Dato’ Abd Ghani


Independent auditors' report to the members of Yayasan Sejahtera(Incorporated in Malaysia)

We have audited the financial statements of Yayasan Sejahtera, which comprise the balance sheet as at 31 December 2012 of the Company, and the statement of comprehensive income, statement of changes in equity and cash flow statement of the Company for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 7 to 23.

Trustees’ responsibility for the financial statements

The Trustees of the Company are responsible for the preparation of financial statements that give a true and fair view in accordance with the Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 1965 in Malaysia. The Trustees are also responsible for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Company’s preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the Trustees, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.


Independent auditors' report to the members of Yayasan Sejahtera (Continued) (Incorporated in Malaysia)

Opinion

In our opinion, the financial statements give a true and fair view of the financial position of the Company as at 31 December 2012 and of its financial performance and cash flows for the year then ended in accordance with the Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 1965 in Malaysia.

Report on other legal and regulatory requirements

In accordance with the requirements of the Companies Act, 1965 (“the Act”) in Malaysia, we also report that in our opinion, the accounting and other records and the registers required by the Act to be kept by the Company have been properly kept in accordance with the provisions of the Act.

Other matters

This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.

Ernst & Young Wan Daneena Liza binti Wan Abdul Rahman AF: 0039 No. 2978/03/14(J)Chartered Accountants Chartered Accountant

Kuala Lumpur, Malaysia


Statement of comprehensive income

For the financial year ended 31 December 2012

Note 2012 2011RM RM

(Restated)

INCOMEGovernment grant 3 1,762,538 1,453,935Donations/contributions 4 281,919 2,120,956Interest income 5 176,143 379,888

2,220,600 3,954,779

EXPENDITUREProject costs 536,887 2,142,009Staff costs 6 1,134,997 791,272Staff training 26,651 175,949Marketing and communications expenses:- Current year 53,346 50,287- Over provision in prior year - (105,140)Traveling expenses 48,226 95,833Professional fees 8,463 48,952Auditor’s remuneration:- Statutory audit 10,000 10,000- Others 10,000 30,000Depreciation 8 95,172 46,541

Office rental 102,220 93,701Car rental - 35,410Office utilities 65,170 32,071Other expenses 63,843 80,399

2,154,975 3,527,284

Surplus before taxation 65,625 427,495Taxation 7 - -Surplus for the year representing total comprehensive income for the year 65,625 427,495


Balance sheet

As at 31 December 2012

1 January Note 2012 2011 2011

RM RM(Restated)

NON-CURRENT ASSET 8 164,984 231,553 43,618

CURRENT ASSETSOther receivables 9 129,776 259,125 9,222Cash and bank balances 10 8,762,795 10,581,654 13,678,454

8,892,571 10,840,779 13,687,676

CURRENT LIABILITIESOther payables 11 115,523 151,468 426,309Deferred income 12 1,290,400 1,572,319 2,930,000

1,405,923 1,723,787 3,356,309

NET CURRENT ASSETS 7,486,648 9,116,992 10,331,3677,651,632 9,348,545 10,374,985

REPRESENTED BY:Contribution from members 13 - - -Retained Surplus 868,105 802,480 374,985

868,105 802,480 374,985

NON-CURRENT LIABILITY

Government grant 3 6,783,527 8,546,065 10,000,000

7,651,632 9,348,545 10,374,985


Statement of changes in equity

For the financial year ended 31 December 2012

Contribution Retainedfrom members Surplus Total

RM RM RM

AT 1 JANUARY 2011 - 374,985 374,985Total comprehensive income for the year - 427,495 427,495AT 31 DECEMBER 2011 (RESTATED) - 802,480 802,480

AT 1 JANUARY 2012 (AS PREVIOUSLY STAT-ED)

- 852,854 852,854

Prior year adjustment (Note 14) - (50,374) (50,374)AT 1 JANUARY 2012 (RESTATED) -Total comprehensive income for the year - 65,625 65,625AT 31 DECEMBER 2012 - 868,105 868,105


CASH flow statement

for the financial year ended 31 December 2012

2012 2011RM RM

(Restated)

CASH FLOWS FROM OPERATING ACTIVITIESSurplus before taxation 65,625 427,495Adjustments for: Interest income (176,143) (379,888) Depreciation 95,172 46,451 Amortisation of Government Grant (1,762,538) (1,453,935)Operating loss before working capital changes (1,777,884) (1,359,787) Decrease/(increase) in receivables 184,991 (39,835) Decrease in payables (35,944) (274,841) Decrease in deferred income (281,919) (1,357,681)Net cash used in operating activities (1,910,756) (3,032,144)

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of property and equipment (28,603) (234,476)Interest received 120,500 169,820Net cash generated from/(used in) investing activities 91,897 (64,656)

NET CHANGES IN CASH AND CASH EQUIVALENTS (1,818,859) (3,096,800)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 10,581,654 13,678,454CASH AND CASH EQUIVALENTS AT END OF YEAR 8,762,795 10,581,654

CASH AND CASH EQUIVALENTS COMPRISE OF (NOTE 8):

Cash on hand and at bank 147,723 461,124Deposits with a licensed financial institution 8,615,072 10,120,530

8,762,795 10,581,654


Notes to the financial statements31 December 2012

1. Corporate Information

The principal activity of the Company is to address extreme poverty based on sustainable living approach which encompasses sustainable livelihood or skills development programme, access to education and social services/amenities and provision of habitable homes. There has been no significant change in the nature of the principal activity during the financial year.

The Company was incorporated on 7 August 2009 and is a company limited by guarantee, incorporated and domiciled in Malaysia. The registered office of the Company is located at Epsilon Advisory Services Sdn Bhd, 312, 3rd Floor, Block C, Kelana Square, 17 Jalan SS 7/26, 47301 Petaling Jaya, Selangor Darul Ehsan.

The financial statements were authorised for issue by the Board of Trustees in accordance with a resolution of the Trustees on

2. Significant Accounting Policies

2.1 Basis of Preparation The financial statements of the Company have been prepared in accordance with the provisions of the Companies Act, 1965 and with the Malaysian Financial Reporting Standards (“MFRSs”), which is in compliance with the International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”). These are the Company’s first set of financial statements prepared in accordance with MFRSs and MFRS 1, First Time Adoption of Malaysian Financial Reporting Standards has been applied. In previous period, the financial statements of the Company were prepared in accordance with the Financial Reporting Standards (“FRSs”). The financial impact on the transition to MFRSs are disclosed in Note 2.2. The financial statements have been prepared on a historical cost basis. The financial statements are presented in Ringgit Malaysia (“RM”), which is also the Company’s functional currency. 2.2 Changes in Accounting Policies The new and revised MFRSs, which are mandatory for companies with financial period beginning on or after 1 January 2012, did not give rise to any significant effects on the financial statements of the


Company. 2.3 Standards Issued But Not Yet Effective The directors expect that the new MFRSs which are issued but not yet effective for the financial year ended 31 December 2012 will not have a material impact on the financial statements of the Company in the period of initial application. 2.4 Significant Accounting Estimates and Judgments The preparation of financial statements in accordance with MFRSs requires the use of certain accounting estimates and exercise of judgments. Estimates and judgments are continuously evaluated and are based on past experience, reasonable expectations of future events and other factors. The directors are of the opinion that there are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year. 2.5 Summary of Significant Accounting Policies (a) Property and equipment, and depreciation All items of property and equipment are initially recorded at cost. Subsequent costs are included in the asset’s carrying amount only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be reliably measured. Subsequent to recognition, property and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses, in accordance with Note 2.3(j). Depreciation of the property and equipment is provided for on a straight-line basis to write off the cost of each asset to its residual value over the estimated useful life, at the following annual rates: Office equipment 33% Motor vehicle 20% Computer equipment 33% Renovation Tenancy period The residual values, useful life and depreciation method are reviewed at each reporting date to ensure that the amount, method and period of depreciation are consistent with previous estimates and the


expected pattern of consumption of the future economic benefits embodied in the items of property and equipment. An item of property and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. The difference between the net disposal proceeds, if any and the net carrying amount is recognised in profit or loss. (b) Financial assets Financial assets are recognised in the balance sheet when, and only when, the Company becomes a party to the contractual provisions of the financial instrument. When financial assets are recognised initially, they are measured at fair value, plus directly attributable transaction costs. The Company determines the classification of its financial assets at initial recognition. A financial asset is derecognised where the contractual right to receive cash flows from the asset has expired. On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consideration received and any cumulative gain or loss that had been recognised in other comprehensive income is recognised in profit and loss. (i) Receivables Financial assets with fixed or determinable payments that are not quoted in an active market are classified as receivables. Subsequent to initial recognition, receivables are measured at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the receivables are derecognised or impaired, and through the amortisation process. (c) Financial liabilities Financial liabilities are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability. Financial liabilities, within the scope of MFRS 139 Financial Instruments: Recognition and Measurement, are recognised in the balance sheet when, and only when, the Company becomes a party to the contractual provisions of the financial instrument. The Company’s financial liabilities include other payables.


Financial liabilities are recognised initially at fair value less directly attributable transaction costs and subsequently measured at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the liabilities are derecognised, and through the amortisation process. A financial liability is derecognised when the obligation under the liability is extinguished. (d) Impairment of financial assets The Company assess at each reporting date whether there is any objective evidence that a financial asset is impaired. (i) Receivables carried at amortised cost To determine whether there is objective evidence that an impairment loss on financial assets has been incurred, the Company considers factors such as the probability of insolvency or significant financial difficulties of the debtor and default or significant delay in payments. If any such evidence exists, the amount of impairment loss is measured as the difference between the asset’s carrying value and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. The impairment loss is recognised in profit or loss. If in a subsequent period, the amount of impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed to the extent that the carrying amount of the asset does not exceed its amortised cost at the reversal date. The amount of reversal is recognised in profit or loss. (e) Cash and cash equivalents For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, cash at bank and short term deposits which have an insignificant risk of changes in value. (f) Equity instruments Contribution from members are classified as equity. (g) Government grants Government grants are recognised initially at their fair value in the


balance sheet as deferred income where there is reasonable assurance that the grant will be received and all attaching conditions will be complied with. Grant that compensates the Company for expenses incurred is recognised as income over the periods necessary to match the grant on a systematic basis to the costs that it is intended to compensate. Grant that compensates the Company for the cost of an asset is recognised as income on a systematic basis over the useful life of the asset. (h) Income recognition Income is recognised to the extent that it is probable that the economic benefits associated with the transaction will flow to the Company and the amount of the revenue can be reliably measured. (i) Interest income Interest income is recognised on accrual basis using the effective interest method. (ii) Donations/contributions Donations/contributions are recognised when the Company’s rights to receive the payment is established or conditions attached to the donations/contributions have been fulfilled. (i) Employee benefits (i) Short term benefits Wages, salaries, bonuses and social security contributions are recognised as an expense in the year in which the associated services are rendered by employees. Short term accumulating compensated absences such as paid annual leave are recognised when services are rendered by employees that increase their entitlement to future compensated absences. Short term non- accumulating compensated absences such as sick leave are recognised when the absences occur (ii) Defined contribution plan

Defined contribution plans are post-employment benefits plan under which the Company pays fixed contribution into separate entities or fund and will have no legal on constructive obligation to pay further contributions if any of the funds do not hold sufficient assets to pay all employee benefits relating to employee services in the current financial period. Such contributions are recognised as an expense in the profit and loss as incurred. As required by law, companies in Malaysia make such contributions


to the Employees Provident Fund (“EPF”).

(j) Impairment of non-financial assets The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when and annual impairment assessment for an asset is required, the Company makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units (“CGU”)). In assessing value in use, the estimated future cash flows expected to be generated by the asset are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Where the carrying amount of an asset exceeds its recoverable amount, the asset is written down to its recoverable amount. Impairment losses recognised in respect of a CGU or groups of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to those units or groups of units and then, to reduce the carrying amount of the other assets in the unit or groups of units on a pro-rata basis. Impairment losses are recognised in profit or loss. An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increase cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised previously. Such reversal is recognised in profit or loss. (k) Key management personnel Key management personnel is defined to include Board of Trustees and Programme Director.


3. Government grant

2012 2011RM RM

(Restated)

At 1 January 8,546,065 10,000,000Amortised to profit or loss (1,762,538) (1,453,935)At 31 December 6,783,527 8,546,065

4. Donations/Contributions

Relates to donations/contributions from Lembaga Tabung Haji and Kuwait Finance House (Malaysia) Berhad.

5. Interest Income

Interest income relates to interest earned from the Company’s fixed deposits account.

6. Staff Costs

2012 2011RM RM

Wages and salaries 689,287 588,692Statutory contribution to Employees Provident Fund and social security 273,691 109,796Other allowances 172,019 92,784

1,134,997 791,272

Included in the staff costs is remuneration for Programme Director amounting to RM253,404 (2011: RM172,710).

7. Taxation

The Company was granted tax exemption status on all gross income under Section 44(6) of the Income Tax Act, 1967. Accordingly, the Company has no tax charge for the financial years ended 31 December 2012 and 2011.


8. Property and Equipment

Computer Office MotorRenovation Equipment Equipment Vehicle Total

RM RM RM RM RM

AT 31 DECEMBER 2012

COSTAt 1 January 2012 156,902 54,539 27,735 39,048 278,224Additions - 19,794 8,809 - 28,603At 31 December 2012 156,902 74,333 36,544 39,048 306,827

ACCUMULATED DEPRECIATIONAt 1 January 2012 21,792 11,615 6,105 7,159 46,671Depreciation charge for the year 52,301 22,145 12,917 7,810 95,172At 31 December 2012 74,093 33,760 19,022 14,969 141,843

NET CARRYING AMOUNTAt 31 December 2012 82,809 40,573 17,522 24,079 164,984

AT 31 DECEMBER 2011

COSTAt 1 January 2011 - - 4,700 39,048 43,478Additions 156,902 54,539 23,035 - 234,476At 31 December 2011 156,902 54,539 27,735 39,048 278,224

ACCUMULATED DEPRECIATIONAt 1 January 2011 - - 130 - 130Depreciation charge for the year 21,792 11,615 5,975 7,159 46,541At 31 December 2011 21,792 11,615 6,105 7,159 46,671

NET CARRYING AMOUNTAt 31 December 2011 135,110 42,924 21,630 31,889 231,553


9. Other Receivables

2012 2011RM RM

Deposits 38,883 36,683Prepayments 19,550 12,374Other debtors 15,700 -Interest receivable 55,643 210,068

129,776 259,125

Other receivables are neither past due nor impaired

10. Cash and bank balances

2012 2011RM RM

Cash on hand at bank 147,723 461,124Deposits with a licensed financial institution 8,615,072 10,120,530

8,762,795 10,581,654

The weighted average effective interest (“WAEIR”) per annum and the average maturity of deposit at the reporting date were as follows:

WAEIR AveragePer Annum Maturity

2012 2011 2012 2011% % Days Days

Fixed rate deposits 3.46 3.49 300 283


11. Other Payables

2012 2011RM RM

Accrual 42,919 48,439Other Payables 72,604 103,029

115,523 151,468

Other payables are interest free and are normally settled on an average term of 30 days (2012: average term of 30 days).

12. Deferred Income

2012 2011RM RM

At 1 January 1,572,319 2,930,000Received during the year - 763,275Amortised to profit or loss (281,919) (2,120,956)At 31 December 1,290,400 1,572,319

Deferred income relates to donations received, where the conditions attached to the usage of the donations are yet to be fulfilled as at the reporting date.

13. Contribution from members

The member of the Company undertake to contribute, not exceeding RM100, to the assets of the Company in the event of the Company being wound up.


14. Prior year adjustment

A prior year adjustment has been recorded to recognise the correct amortisation of the government grant. The effects of the adjustment is as follows:

As Previously As

Stated Adjustments Restated

RM RM RM

BALANCE SHEET31 DECEMBER 2011

Government grants 8,495,691 50,374 8,546,065Retained surplus 852,854 (50,374) 802,480

STATEMENT OFCOMPREHENSIVE INCOME31 DECEMBER 2011

Government grants 1,504,309 (50,374) 1,453,935Surplus before taxation 477,869 (50,374) 427,495Surplus for the year representing total comprehensive income for the year 477,869 (50,374) 427,495

15. Financial risk management objectives and policies

The Company’s financial risk management policy seeks to ensure that adequate financial resources are available for the achievement of the Company’s objectives and principle activities whilst managing its liquidity risk and credit risk. The definition of these risks are as follows:

(a) Liquidity risk Liquidity risk is the risk that funds will not be available to meet liabilities as and when they fall due. The Company actively manages this risk by maintaining good governance over the cash management of the Government grant and contribution from third parties, and operates within clearly defined guidelines that are approved by the Trustees.


The table below summarises the maturity profile of the Company’s liabilities at the reporting date based on contractual undiscounted repayment obligations.

Within One Year2012 2011

RM RM

Other payables 115,523 151,468

(b) Credit risk Credit risk is the risk of loss that may arise on outstanding financial instruments should a counterparty default on its obligations. The Company’s exposure to credit risk arises from other receivables. The Company minimises credit risk by dealing exclusively with credible and established companies. At the reporting date, the Company’s maximum exposure to credit risk is represented by the carrying amount of the other receivables and cash and bank balances.

16. Fair values

The fair values of all financial assets and liabilities approximate the carrying amounts due to their relative short term maturities.

17. Capital management

The Company manages its capital by following the Company’s policies and guidelines and also seeks approval from the Trustees with regard to all capital management matters. Presently, the Company’s activities are entirely funded via Government grant and contributions from third parties.


Acknowledgements

On behalf of those whom we serve, we are grateful for your support

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We would like to invite more sponsors from the corporate world and individuals from the public at large to partner with us to create a positive impact and alleviate poverty in Malaysia. We hope to benefit the local communities and help building brands together as well as reach corporate social responsibility goals in a way that complements each other’s talent, interests, and needs.

While our key focus is to build sustainable communities with the hardcore poor, we would also like to create value for your business, staff, and shareholders.

Please contact [email protected] or +60 3 2268 0030 to learn how your company can support the hardcore poor community through Yayasan Sejahtera.

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